Socio-Economic Effects of Microfinance Services on Women: The Case of Rosewo Microfinance, Nakuru County, Kenya

Discussing the impact of microfinance services on women clients

The case study analyzes the socio-economic effects associated with the participation of women in microfinance programs in Nakuru County, Kenya. It is based on a survey conducted by ROSEWO, an MFI operating in the area. Data for the study was collected through questionnaires sent to a random sample of 370 women participants who used microfinance services from ROSEWO for at least two years. The paper finds that access to microcredit services increased income levels, stocks, and output enterprises as well as increased expenditure on health and education services. Moreover, the availability of microsavings services to women increased capital resources, smoothened irregular income levels, and also increased income. The paper also finds that microinsurance services enabled women to build stronger trust bonds, created more social networks, and motivated participation in development activities. The paper covers the following sections in detail:

Background of the study with a focus on problem statement and objectives;
Concept of socio-economic effects related to poverty;
Theoretical discussion including the vicious circle of poverty theory, imperfect information paradigm, and Grameen bank model;
Methodology of the study and a presentation of findings;
Discussion on the socio-economic effects of microcredit services, microsavings services, microinsurance services, and non-financial services.